The End of `Breaking Bad': Lunch Money (08/01)

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Aug. 1 (Bloomberg) -- On today's "Lunch Money," super-charge the day, and devour all that's driving the markets: stocks, bonds, currencies, commodities, options. (Source: Bloomberg)

.. welcome to "lunch money." i'm adam johnson.

We have the best business video anywhere.

Let's take a look at the menu.

In tech, google's multi-war.

Talking hardware i'm advertising, search.

You name it, they are doing it.

Streaming saves "breaking bad " from the cutting room floor.

The world according to media baron conrad black.

In motors -- part of the auto sales you forget about.


In eastts, tim goes over to the palm for lunch and it's a pleasant surprise.

Remember the good old days when google used to be just a search engine?

That was back in the 19 90s. then they started selling ads tied to search words.

From there, a web browser, mapping, research with nasa, mobile software and most recently hardware like driverless cars and the chrome cast streaming tv device.

That brings us to today.

As google releases its first phone made 100% by google.

Moto x is made possible by the purchase of motorola mobility that happened two years ago.

It is an important phone from motorola and google but for several -- separate reasons.

For motorola, the same story, we want to be back in the game and in the same conversation as samsung and apple -- and apple.

But for google, more about securing what android has become.

To show partners that if you are not making phones like this that use android the way it can be used, you are not stepping up to the game.

Here is another take on why google is getting into the smartphone business.

Bloomberg businessweek's sam grobart.

Two years and $12.5 billion ago google acquired motorola mobility.

Motorola has made smartphones sent to them but it has not really matter.

The next one does.

He cut the new phone, moto x is the first of a develop entirely under google's watch.

Why is google so set on the hardware business?

Because that is where the money is.

Mobile profits -- 98% of them are split between two companies.

Apple and samsung.

Google's mobile strategy until now has been based on a kind of a complicated bank shot aired we will make this mobile os that we will call android and we will give it away to smartphone manufacturers for free because the more smartphones there are, the more mobile online traffic there is, and we can make a lot of money on that because we sell more online ads in anyone.

Apple and samsung make their money a much more old-fashioned way.

They make a divisive or one price and then they sell it for a higher price.

It seems to work.

Samsung's profits just from mobile are greater than all of google's profits with together.

Moto x is google's first real effort to get into that action -- get in on that action.

Does anybody know a kind of company google really is?

Google is increasingly a content company.

That is how it sees itself.

Apple is still an appliance company.

The dan loeb concert temp at sony is about splitting up the appliance business.

There is a massive distinction between the appliance manufacturer.

Samsung is an appliance company.

Google does not want to be an appliance company.

They just want to use appliances to view google.

Don't forget about search.

Google has a lock in the digital advertising market with they exploited very successfully.

They are in display as well as inserts.

Mobile search obviously as well.

Social, mobile, and video.

They have the five lakes.

Where is the challenge going to come from?

Eight focused mounting mounting an assault and so is yahoo.

Yahoo, one of the original og's of internet search.

Marissa mayer is trying to revenues -- revolutionize, making acquisition at the acquisition.

Brad stone writes about an exclusive interview with ms.

Mayer in the next edition of the magazine.

Here is his take.

It has been a year since marissa mayer (comfortable perch at google where she was one of the first engineers and join yahoo, a company that everyone in silicon valley has basically counted out.

It for years had a talent problem where the best and smartest employees were leaving and finding opportunity elsewhere in silicon valley.

The jury is still out on how marissa mayer has done at yahoo over the last year.

The stock is up, but that is partially on people to enthusiasm for yahoo's stake in alibaba.

One thing marissa mayer is doing is refocusing on mobile.


She thinks the emergence of smart phones is one of these moments that can scramble the silicon valley hierarchy and turn losers into winners.

So she has created a mobile group to create well-designed applications around the things that yahoo does best and where it still has a big audience.

Things like yahoo mail and messaging and the flickr photo sharing.

Yahoo faces an uphill battle with mobile.

I don't have a lot of assets other companies like apple and google and amazon have.

We don't have hardware.

It will really wonder why marissa mayer would have taken this job.

Well, one of the stories she tells us how she almost thought one year ago that she didn't get the job.

She says that on the night she was opposed to hear from the yahoo board she had not heard from them.

It was an hour and a half after they were supposed to call.

She describes being disappointed at how she thought she was not going to get to do something -- some of the things she had planned for yahoo.

It is really a sign of how much opportunity she saw in a company that a lot of people in silicon valley has really counted out.

Rex a meyer came from google she was employee number 20 -- remember, melissa meyer came from google and she was a employer 20. the question, can she mount a viable challenge to google?

Tweet the lunch lady.

Streaming saved "breaking bad" from the cutting room floor.

The executive producer explained that explains why.

Nickelodeon is using cool new technology to change the way we all make cartoons and want to them.

We will take you inside a network animation studio.

That is going to be fun.

We will be back -- we will be right back.

? in media, netflix has just begun offering individual profiles on family accounts and in theory it makes it easier for large families to get their.

Amazon is also streaming for families, landing five more pilot programs and hulu offering full original series to paying subscribers.

This is with the ceo of online streaming provider aereo on what it means and how his company is impacting.

A lot of the majority of other content is becoming more available on libraries.

If you can have aereo and netflix and a couple of other things in front of you, it makes for a pretty darn good package for about a 10th of the price that you would be paying in a large bundle.

Companies like aereo are extremely valuable because they arrived on alternative way for consumers to get access to basic programming that is available with a lot of technological convenience.

It is a really important point that alternatives are so important.

Otherwise you end up with these monopoly systems where the only person who is harmed is essentially the consumer.

One show definitely by streaming them the illusion of tv is "breaking bad." executive producer vince gilligan explains why the show could not have aired on a traditional network.

I would have to say, no.

We never really bothered to pitch the show six years ago to traditional -- to any traditional networks.

There are wonderful places to do business.

There are a lot of great shows on network tv.

Off the top of my head, a show like "the good wife" is fantastic.

But typically the network, because they have to broadcast -- hence the word -- they do not get to be as edgy and nichey as cable television gets to be.

It would have been a tricky sell for the network.

For fans of the show who have not seen the first eight episodes of this final season, those will be going up on netflix very shortly.

How important has netflix been in the success of this program?

Netflix has been crucial.

Netflix and itunes -- or the itunes store, i guess, any of these on-demand services that have allowed people to catch up with the breaking --"breaking bad," which is a very hyper serialized show, this technology really -- i don't think it is a stretch to say breaking bad might have been canceled in the second or third season if not for this vod technology that exist now that allows people to catch up.

When it comes to actually building buzz for the final episodes, you played an important role during "the x- files" and you were there for the finale.

What has changed in the ability to build around the end of a program?

The internet.

I have to get -- give credit to it.

"the x-files was what was one of the first to truly benefit from the internet, and online as a place of social interaction and social media.

And since 2002, when it ended , that ability for social interaction has only increased exponentially.

You got twitter now, facebook, all of these outlets, social media outlets that allow fans of the show of "breaking bad" to communicate with one another.

Is it -- it is a great thing for us.

Another company looking for help for streaming.

Nickelodeon using cool technology to change the way it makes cartoons.

? ? this is modern storytelling.

Sanjay and greg is a new look at old -- is the new nickelodeon show created by these two guys who met in a san francisco bar and were soon making goofy cartoons in their bedrooms, all created on laptops.

Technology has been a giant help.

The democratization.

It is in your reach.

What they are doing is revolutionary.

With the patent also, you can get different tips that actually interact with the screen.

Jay draws the essentials of every scene on his computer.

What we try to do is provide a very, very intense map to have a cartoon gets made.

Then animators in korea draw the thousands of nitty-gritty animation overseen by dershberge r using the latest software.

Storybook row, adobe photoshop, media composer.

The result can be thrilling.

3, 2, 1 -- here is what is really groundbreaking.

Sanjay and craig is not just a linear tv but short bit written for the web or games for the iphone.

So much we do not have time to talk about or would not lend itself necessarily to television, that we will want to see in other platforms such as tumblr.

The hope is that this new original content, this multidimensional multimedia will help nickelodeon's ratings.

It has seen ratings slide 21% in the last five years him as the disney channel has made up for lost ground.

Riding the coattails of hits like "phineas and ferb." they hope "john jay and craig -- "sanjay and craig" will lead.

This is the don't touch a button on the nickelodeon iphone app.

Can i tried this?

-- can i tried this?

Nickelodeon executive matthew evans say "sanjay and craig close quote everywhere will transform the business.

Sometimes they want to play a game, sometimes they want to watch a short form video and sometimes they want to look at photos or hear from their favorite stars and characters him a love for us it is looking at all of those in understanding all of these are part of the content they consume.

Cory johnson, bloomberg, burbank, california.

From new media to the traditional kind, former media baron conrad black says the newspaper business is far from dead.

He also has a few words about life in prison.

? conrad black build one of the great empires in newspapers in the world.

He started with a small q paper in 1969 and grew a transatlantic empire which included the chicago sun-times, london's "daily telegraph" and canada's "national post" but he lost control after a dirty battle with shareholders that landed him in prison for three and a half years.

Let's get the prison part out of the way first.

I would remind your viewers that all of the counts against me were either -- reject it by jurors which were unanimously vote -- vacated the supreme court and they won by large -- by far the biggest settlement in canada over the allegations against me.

You have a perverse justice system and it did not spare me three, i must say relatively civilized, and quite interesting years as a guest of the american people in one of your less, odious guesthouses.

That was conrad black on "market makers" yesterday.

While his impression of the u.s. justice system obviously not positive, he does have a lot to say about the promise of american democracy.

He also says we have work to do.

The world owes the united states the triumph of democracy and those of us and other countries can never fail to recognize the grateful for that.

But the united states today is not one of the better functioning and microfiche.

It is a democracy but it does not function particularly well.

What is a well functioning democracy?

Which country would you point to?


Britain is.

Australia is.

I would say germany is.

Most of the netherlands are, most of the scandinavian countries.

A lot of countries.

What could make america exceptional again?

In the sense you mean as an exceptionally virtuous country in the way the government is run?

I would say you have to restore human liberties.

The fact is, you had 6-12 times as many incarcerated people as canada, australia, britain, france, germany, and japan.

You have prosecution service that convicts every body and they don't get a trial.

And it is simply not a society of laws.

You have 48 million people in the u.s. with a record.

A 48 million.

That means even if you take out the dui's and disorderly and fraternity party 25 years ago that are not stigmatizing or relevant you still have 15% of the male adult tabulation -- population of felons.

It should not be happening.

You've got to do something about the role of money in government.

It is a terribly difficult problem.

I am a capitalist.

I believe in people being able to contribute to candidates of their choice, but it is now a walk -- bought system and a corrupt system.

Based on your characterization and a study of history which he documented the book, 10 years from now do you still think the u.s. will be the world's only superpower?

Not necessarily the worlds only one.

But the leading one.

I want to be clear, i predict renovation for the united states.

It is a company that has the genius of renewal and i am not a declineist.

All people have ups and downs.

It is a good time to have a decline.

It is not under threat by anybody.

It will work its way out of it.

It always does.

That was conrad black on america.

What about conrad black on newspapers?

We can go on just converting trees to newsprint, printing them on huge presses and delivering them at enormous expense all around the great cities of the world.

We have to make the internet transition and have a printed product for those who want it.

But the burden of the printing is ultimately going to have to be carried in the homes of the subscribers.

If they want it printed, it will be printed at a home printer rather than a big plant on a colossal press and delivered.


black sees a future for the printed word in spite of competition from the internet.

He is bullish on the country's great papers like "l.a. times," "the chicago tribune" and "the new york times." there should be a market for papers like that.

Even if the median -- medium itself, it is still a powerful draw and should be worth a lot.

Warren buffett has been buying up icon of small newspapers.

What do you think of his strategy?

I would never criticize his strategy as a buyer.

His track record speaks for itself.

I think he's basically right.

He is buying in areas where the vulnerability to internet penetration is not as severe as it is in the largest markets.

And he is buying at a very low multiple of cash flow.

And i think he is saying these things can probably be adapted as needed, and even if they can't, they can be stripped with profits so there is no way he will lose.

I am sure it is a correct analysis.

As he reminded us, you got your own personal reasons for not wanting to be involved in a public company.

But for this -- at the same time, by virtue of your experience, you know well how challenging it can be to balance the long-term needs of strategy with the short-term demands of public company shareholders.

As a matter of principle in your mind, do you believe it is better for newspapers to be in private hands?

I think it is better for them to have controlling shareholders, because otherwise they simply cannot resist the competitive pressures.

We ultimately won the price war in london with mr.

Murdoch even though he had a bigger company because we were, as controlling shareholder, prepared to cut price drastically -- cutprice, drastically cut the prophet, -- profits come reduce the dividend.

Then the prices came back up only to the company private at a very handsome price.

But we could not have done it before -- if we had been dependent on the goodwill of institutional shareholders from quarter to quarter.

Media mogul conrad black, his book "the flight of the eagle" will hit bookstores next month.

Hear what the whole foods co.

Ceo says about the many ways the company is attracting your business.

? it is 26 after the hour, which means bloomberg television is on the market.

A historic aid for the market today.

The s&p is over 1700 with a stronger ism data helping stop like chesapeake energy and also farmers market up 100% on its first day of trading.

We will be back in half an hour with more "on the market." "lunch money" will be right back.

? this is "lunch money" on bloomberg temple is -- television and streaming live on, and any windows phone.

I'm adam johnson.

Pictures grabbing headlines.

Edward snowden has been given asylum by russia for one year.

The fugitive hacker left the moscow airport where he had been confined for more than a month.

Snowden departed airport in a a taxi for an undisclosed location.

He is allowed to travel freely in russia without leaving the country.

In argentina, a huge forest fire is burning a nature reserve near brenna thiry's -- buenos ai res.

The flames are visible from the city's financial center.

The mayor site arson as a possible cause.

Pools and water parks are packed in parts of china has record heat grips the southern and eastern portions of the country.

Shanghai experiencing its hottest july in at least 140 years.

Temperatures reaching 95 degrees fahrenheit 25 days of the month.

Overall 19 provinces covering almost a third of the country are experiencing scorching heat.

For earnings, let's head to the grocery store today.

We will start with breakfast i'll -- aisle and kellogg.

Sales are up to quarter but will slow in the second half and foreign exchange may impact earnings.

Bottom line, kellogg saves a couple of pennies from the full- year guidance of 3.85 dollars.

-- $3.85. ) gamble -- lower income because it sold pringles to kellogg last year.

The former ceo returns to the corner office.

Whole foods profits on the rise.

Volumes are up as the organic grocer competes on price and expanded locations here they are even opening a store in brooklyn with a greenhouse roof garden.

What else are they coming up with at whole foods?

We will continue to flex on store size.

It gives us the flexibility to go into a number of new markets to go towards our growth total.

Remember, our square footage growth is actually accelerating now.

Number two, we will continue to raise the bar of standards.

We will go places where others cannot go or are not willing to go in terms of the quality of the products that we sell.

Number three, we will continue to evolve the actual in-store experience.

We stepped up the online ordering tool for the holiday orders just dirt -- last year.

We significantly improved that we expected to be very robust this fall.

The principal ways we first invested is in our new, and commerce platform, and we are now putting it in place.

It gives us the ability to rotate mobile, social, e- commerce as well as in-store.

It is a 360 system that allows us to serve customers from whatever angle they come at us.

We should note, whole foods has been ranked by "fortune" as one of the 100 best place to work for 15 years in a row.

We will be joining pimm fox for lunch at the palm with a great- grandson of the restaurant's cofounder.

And today is auto sales day.

What moves autos?

Tires, of course.

The head of michelin is next.

? this is "lunch money" on bloomberg television and streaming live on, your tablet phone, and now any windows phone.

I'm adam johnson.

Today is auto sales day, of course when the big three tell us how they are doing.

Let's talk tires with michelin's pete selleck -- the company is hiring, expanding, and making a lot of tires.

We aren't guarding our 19th plant in north america in anderson, south carolina -- we are starting starting our 19th plan in north america.

We have been able to find all of the people right there in anderson county, south carolina.

Very good news.

The president visited chattanooga, amazon plant, a big stink about $11 an hour.

What is your base pay?

A plant like that people will start between 10-20, more $15 and $16 and go up.

Manufacturing jobs are very attractive jobs.

The impact the jobs have on the entire community, the multiplying effect, is really tremendous.

A closely is your business correlated with the auto sales we are going to see today?

Roughly about 80% to 85% of sales is replacement market.

You have to replace your tires when they wear out and that is where most of our sales are.

Nevertheless, we are involved with the oem makers -- the f-150 , those tires are michelin.

And excuse me, that was a south carolina shameless plug.

-- excuse me, that was a south carolina shameless plug.

Your book goes to the hard disk of this.

You said we cannot have a foreign policy unless you selleck is successful.

And i was asked if we are producing in the school system those with qualifications and skill sets you you need.

There are stories that hundreds of thousands of jobs in manufacturing are going begging in this country because americans are not graduating with the skills people like you need.

That is a challenge.

We need more young people going into stem programs -- instead of taking the easier courses and have any good time, you bought the down and study science or engineering or mathematics.

Boy, you are tough.

An example, this year this country will need about 120,000 new computer sciences out of college and there will only be 40,000 americans will graduate with a great.

But i don't need a computer science degree to make it higher , do i? you need an engineering and technical degree.

The people we are hiring today are off much more skilled than the people we hired 30 years ago.

To get in as a production worker, good solid high school, as a maintenance worker, technical education and we hire a lot of engineers.

Are people doing a better job making those tires that allow you to drive when you have a flat -- because they do not last as long and they are expensive.

The carmakers drove us for trying replace the spare tire to improve fuel economy and improved emissions.

Solutions to try to get rid of the spare tire like the runflat has been driving innovation the last 10 years.

Input costs, how do you manage it at a large scale?

A lot of what we buy our commodities.

Natural rubber is the largest.

It is an open market.

The costs are six times higher than 10 years ago.

So, those costs have actually been mostly passed on into the marketplace, so tires are more expensive today than they were.

But we also dramatically improves productivity.

He mentioned michelin produces tires for the natural gas ford 150, so who is buying in natural gas pickup question mark here is the head of ford's commercial vehicles sustainability group.

The early adopters have been the commercial vehicles because commercial vehicles tend to use more fuel, so therefore they end up -- they end up seeing the best benefit.

They get the quickest payback return on their investment because they're using more fuel.

A personal user is less likely to burn that much fuel so it is -- it takes longer for the payback.

That is why we have seen commercial people use it first.

With the growth of the infrastructure around the country and the the price differential now between gasoline at almost four dollars a gallon and in some cases like oklahoma, natural gas is going for $.29 a gallon -- $.79 a gallon.

There is such a difference in gas prices that the general public will be taken advantage of this as well.

What is changing inside the car?

As we all become more dependent on smartphones, automakers have been competing to create a fully connected car.

But what about safety?

"bloomberg businessweek's " sam grobart looks at high-tech solutions to the high-tech distractions on the road.

There are two trends happening now in the automotive world that are happening -- and i have a term for both of them.

Mutually assured distraction.

On the one hand, many drivers won as many apps and services as they find on this to be available behind the wheel.

And the auto industry is happy to oblige.

You can now stream pandora to your ford, look up yelp listings and use google earth.

The problem is, doing a lot of this means you are not doing a lot of this -- oops.

But the auto industry has a solution.

Advanced safety systems that take over certain driving tasks.

For example, take a modern mercedes-benz.

The act of blind spot assist will keep you out of the way of a car coming up beside you.

Lane assist will let you back into place if you find yourself drifting out of your lane.

We do have more things to distract us while we are driving.

But we also have new technology to keep us safe while we are being distracted.

Since the genie is out of the bottle and we do not want to lose any of our new toys, perhaps the only solution is yet to come.

Once cars can actually drive themselves, we can do whatever we want behind the steering wheel because we will not see steering them.

Driverless cars could be a reality.

Elon musk says he is looking into adding driverless technology to the tesla.

When we come back, pimm takes bread with fourth generation palm owner and gets a surprise for dessert.

And how american diner is changing the menu.

We will be right back.

? we have all your meals right here on "lunch money" and let's start with breakfast.

Denny's had a rough second quarter.

Sales fell seven percent.

The company is changing the menu and revamping stores.

There is -- here's what the ceo had to say.

Over all the momentum and what you are hearing other full- service operators is the continued choppiness where some markets are strong where there is more employment recovery, particularly the working class consumer where housing starts are associated, and then softer where markets are behind.

We are in a value environment so we have our 2, 4, 6, 8 value menu that trade in areas where times are tough for a little higher.

What is your favorite meal?

My favorite meal has to be the new beer battered fried haddock.

A fried fish plate.

Going back to the diner heritage from the 1960s and the 1970s where we had more of a reputation of being a diner.

Our new items are extraordinary.

Eight dollars including beverage.

It is very good.

Now on to lunch.

Another restaurant part of the american culinary landscape for generations.

We are talking about the palm.

Pimm fox had lunch with the great grandson of the man who started it all.

The palm restaurant group has 28 locations and roughly 1500 employees.

To learn more about the palm, i visited the palm tribeca for lunch.

My great grandfather started in 1926 with his buddy.

Two accounting guys came over from parma around 1913 and 1916 and started to get into the restaurant business.

-- two italian guys came over from parma.

The license guy stamp it the palm -- they were nervous, so they do not say they wanted it parma.

This is on west street, literally in the shadow of the freedom tower.

The original was on 2nd avenue number right near the 40's midtown.

It was important for it as in new york join to come downtown and be part of the rebuilding after 9/11. we felt, as giuliani was saying, businesses needed to get back into the game.

Let's rebuild downtown.

We need to make an effort.

We were happy that we were evil to do that.

Square footage.

We know we are at 5500 square feet at the tribeca palm, and you do about 250 to 300 meals a day, or a sitting.

300 covers.

It can vary.


How do you decide what is a good day and what is a good day?

You open the door and you don't know what is going to happen.

You do your forecasting.

You look at the arc of your year.

You know in the fourth quarter it will be busy.

October, november, december.

Additionally people are going out and celebrating.

Traditionally in places like new york, july and august he will swing down.

You know when the super bowl is coming, so you know it will be a busy january or february.

You do forecasting.

We do a lot of grassroots marketing.

It is really important that our teams have relationships with concierge, with the businesses, really the event planner that goldman sachs and american express in the neighborhood, for instance.

We were the first) in 1988 to start the loyalty program.

837 club, the original address.

We now have approximately 100,000 members in that group that we can speak to that are loyalists.

That group of people became instrumental in keeping our business as healthy as it could be, because we could talk to them and offer things to them like special value meals in the great wine selection.

That group of people really are responsible for 43% of sales.

Like the first social media list.


How did the whole idea of putting the caricatures on the wall, how did it start?

How do you get to be on the wall?

Quirky, cool.

It started in the 1930s. in midtown, the original palm is where all of the newspapers were.

So, a lot of the artist would come in.

A rough time.

Great depression.

My great-grandfather and his partner allow them to draw on the wall in lieu of paying for their meals.

That was it.

Come on in.

That kind of joint.

To get your face on the wall, to us, you had to be a great customer.

A special person.

And we have to have a really good relationship.

We are not sitting at this booth for any random coincidence.

We are sitting near because there is something i need to show you.

I would like to unveil what we have put your caricature on our wall.

A very special place.

In the corner.

Yes, in the corner.

Here you are.

"taking stock." thank you very much.

Do you like it?

You gave me more hair than i deserve.

And you removed all the wrinkles.


This -- this is your booth.

I like that i am next to mike tyson.

I feel safer already.

[laughter] way to go, pimm fox.

Either way, he should be very honored.

There are only five caricatures added every year.

That is a bdo.

The cool.

Maybe he will take me for lunch.

That's that is a big deal.

Her mystery meat -- for the mystery meat, something invented months ago in new york by a baker and now it is all over the far east.

Dunkin' donuts advertising in north korea for a new york pie donut.

Curious stuff.

It is everywhere.

See you tomorrow.

Nearly 56 past the hour, which means bloomberg is on the market.

Let's look at how stocks are trading.

The s&p 500 fell above the critical 1700 level.

Manufacturing reading in july was the biggest one-month increase since 1996. box adding to the six percent rally we saw in the s&p -- box adding to the six percent rally we saw in the s&p in july.

Exxon mobil and the downside.

Trailed analysts profit estimates by the most since 2002. refining was the achilles heel.

We are watching friday's jobs number and here to discuss what options market is pricing in is amy wu, strategist at rbc capital markets.

Amy, what are the options traders talking about the potential market reaction tomorrow?

All eyes are definitely on payroll.

Right now the market is implying plus or minus one percent move.

That's just based on looking at the s&p break even from the options.

What i would say is that is quite a reasonable break even given how we have seen payrolls in other past times.

Is there any caution going into that, however?

Yes, what i would say is very short term, so in the next week, there has been a lot of caution into this rant so a lot of are doing short term hedges that are only for protection for one or two days.

Then them one month, two months out you are seeing a ton of call buying in the technology sector and the more cyclical cyclicals -- technology, economic recovery, what is driving the options market?

Is it fed paper talk, the data?

-- is it the fed taper talk question mark my personal view is a lot of this taper talk has driven to big themes in the market.

One is m&a. anchors are saying before the rates rise, we may want activity on the tape and you see it reflected an options market.

The second has been what obama has said with with the tax proposal.

A lot of investors think it means repatriation is in the tape.

If that is true, you are seeing buyback seeing more activity there and call buying around that.

I think that is what is driving tech and the other sectors.

Another thing, if we look overseas, is europe.

Ecb president mario draghi signaling maybe the work is over.

The u.s. is typically thought of as a safety play.

It is totally true.

I think the u.s. this year has definitely been the gold standard, the tallest house on the block, that type of thing.

If you think about it, your today, there has been 15% of performance between the u.s. and the european markets but you

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